Paying Your Driver

I have been paid flat $300 for any load less than 600 miles, anything over that i get paid by the miles $60cpm

 

AND do you have a contract that makes you a 1099 or no contract that makes you an employee?

 

What does a contract really have to do with it? Anyone can quit or be terminated from w2 or 1099 work at any time. Who is taking responsibility for the taxes is all that i can figure differs between 1099 and w2.

 

Without a contract there is no way a 1099 is legal. A 1099 is for independent contractors. Can't be a contractor without a contract.

And it's a lot more than taxes. If you get hurt on the job there is no workman's comp for example.

 

I wouldn't hire on a 1099. Tax evasion, workmans comp evasion, etc.

Pay $125/ day worked + 20cpm.

You can legally pay your driver $50/full day away from home ($25/day on days he/she leaves out or comes home) tax free. It's called per diem.

Employees can no longer deduct per diem but employers can reimburse it.

 

Why?

Because without one, you are an employee.

That's been proven in court many times..

 

That answers that one i guess. Thanks.

 

I always paid percentage, and here is why.
If you pay by the mile, o keep a driver you HAVE to keep the truck rolling, pay, maybe pay deadhead miles, layover pay, ets.
I never cared if my tuck was rolling or not, I cared about a certain amount of revenue, whether It ran 100 miles to get it or 3000 made no difference to the driver, his check would be coming and he knew it. Now there were etimes I would put them in a motel, when needed, even for 2 or 3 months.

 

Umm, Megas buy so much they get a discount everywhere, They are self-insured, they buy trucks, tires, and fuel in bulk so their cost is a lot less. They usually pay practical miles zip code to zip code. Some of them pay percentage, but as a driver, it's the same pay at the end of the week.

Megas split up the operation into separate company's for tax breaks. The company shop may be a separate company, the Cafeteria, Need flatbed equipment? that is a separate company. or maybe "contractor".

They buy all their trucks with "cash" though a separate "leasing" company. Then that company leases them to the parent company or a L/O. The L/O overpays for the truck (what 20k?) at the end of the lease just to turn it back in to the lease company and then the lease company turns around and sells it for another 50-80k after the L/O has already paid for it.


Hard to compete with that.